The Total Revenue Curve for a Firm Is Given by TR

question 5

Multiple Choice

The total revenue curve for a firm is given by TR = 2Q.

• A)The firm is definitely a monopolist.
• B)The firm is definitely not a monopolist.
• C)The firm may be a monopolist or a perfectly competitive firm.
• D)One cannot tell from the equation what market form applies.

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Definitions:

Natural Monopoly

A scenario in which a single company is able to offer a product or service more cheaply than any possible rivals, usually as a result of benefiting from the economies of scale.

Profit-Maximizing

Profit-maximizing is the process or strategy employed by businesses to adjust their production and sale operations to achieve the highest possible profit.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in commercial, industrial, or professional activities.

Operating

The act of conducting business or maintaining functions within an organization or system.